China strengthens intellectual property protection with a major reform introducing new requirements for trademark registration, use, and enforcement.
On January 1, 2027, the new Trademark Law of the People’s Republic of China is set to come into force, introducing significant changes to the management and protection of intellectual property rights in the Chinese market.
This legislative reform represents an important development for international companies operating in China or planning to expand into this market. The new provisions strengthen measures against bad-faith trademark registrations, introduce stricter requirements regarding genuine trademark use, and modify certain administrative procedures.
For European and international businesses with commercial interests in China, anticipating these changes will be essential to protecting their assets and minimizing legal risks.
What Are the Main Changes Under China’s New Trademark Law?
China maintains its first-to-file principle, under which trademark registration priority is generally granted to the party that files the application first.
However, the reform places greater emphasis on ensuring that registered trademarks correspond to genuine business activities or a justifiable commercial strategy.
The main changes include:
- Shorter Trademark Opposition Period
The deadline for filing an opposition against a trademark application will be reduced from three months to two months following its preliminary publication.
This change requires businesses to strengthen their trademark monitoring systems and respond more quickly to potentially conflicting applications.
- Stricter Controls on Trademarks Without Genuine Use
The new legislation introduces stricter controls on trademark applications filed without a genuine intention to use the mark or exceeding the reasonable needs of a company’s business activities.
Although defensive trademark registrations may still form part of a legitimate protection strategy, businesses will need to provide stronger justification for their purpose.
Furthermore, the reform strengthens mechanisms for cancelling trademarks that have remained unused for three consecutive years, unless there are valid reasons for non-use.
- Stronger Measures Against Bad-Faith Trademark Registrations
The reform expands legal mechanisms to combat fraudulent applications and abusive trademark registration practices.
The measures include warnings and financial penalties of up to RMB 100,000 for certain violations, with potential liability also extending to trademark agents involved in such practices.
These provisions aim to promote a more transparent registration system and protect businesses against the misappropriation of their distinctive signs.
- Recognition of Trademark Use in Digital Environments
The new legislation expressly recognizes the importance of trademark use through the internet and other digital channels.
This is particularly relevant for businesses selling products through e-commerce platforms, online marketplaces, and other digital sales channels.
Maintaining documentary evidence of commercial trademark use will be essential to demonstrate genuine business activity and defend intellectual property rights in potential administrative proceedings.
Other Important Developments for Businesses
In addition to these changes, the reform introduces amendments affecting other areas of trademark protection:
- Well-known trademarks: Their recognition and protection will be strengthened through case-by-case assessments.
- Motion trademarks: The reform expands opportunities to protect distinctive signs involving movement, subject to certain limitations.
- Trademark licensing: Changes to the licensing framework may affect contractual arrangements and commercial relationships.
- Misleading trademark use: Corrective measures and penalties may apply to practices that could mislead consumers.
- Expired or cancelled trademarks: Changes to the waiting period for filing identical or similar marks will require businesses to monitor their trademark rights more closely.
How Should Businesses Prepare Before 2027?
The implementation of this reform provides an opportunity for companies to review their trademark protection strategies in China and adapt them to the new legal requirements.
Businesses involved in commercial activities, manufacturing, distribution, or international expansion in China should consider the following actions:
- Audit their trademark portfolios, identifying strategic registrations, defensive trademarks, and registrations that are no longer necessary.
- Review trademarks that are not currently in use, particularly those approaching three consecutive years of inactivity.
- Collect and preserve evidence of commercial use, including online sales, advertising materials, and digital marketplace activities.
- Document the business justification for defensive registrations and future trademark applications.
- Update trademark monitoring systems to accommodate the shorter opposition period.
- Plan upcoming trademark renewals and review licensing and distribution agreements involving registered trademarks.
Taking preventive action can help reduce legal disputes, avoid the loss of trademark rights, and strengthen legal certainty for business operations in China.
International Advisory Services to Protect Your Business Interests in China
In an increasingly complex regulatory environment, having an appropriate strategy to protect intangible assets is essential for companies operating internationally.
At Feliu and Expatfeliu, we support businesses throughout their international expansion processes, providing specialized advisory services in legal, tax, and international mobility matters.
If your company operates in China or is considering entering this market, our team can help you assess the implications of regulatory changes and coordinate the necessary advisory services to support your international operations.
Contact our team today and prepare your business for the new challenges of the Chinese market.
